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Getting rid of credit card debt within a year seems like a very difficult task to complete. However, it is not impossible to do so. You just have to find the self-control, discipline, and determination to complete the debt relief program that you have started.

When it comes to debt, Americans have successfully accumulated a lot of it. Reports reveal that the total consumer debt already exceeded $4 trillion. Among those that are fast increasing is credit card debts. In fact, by the end of 2018, consumers added $41 billion to their current balance. This is quite a lot of debt to pay back. Add to that the high-interest rate of credit cards, this balance will quickly grow if you do not do something about it.

Fortunately for you, all it takes is 4 simple steps to get out of credit card debts. If you do it correctly, you might be able to pay everything that you owe within a year after you started.

4 steps to pay off credit card debts fast

If you want to improve your financial future, it is a must that you get out of debt as soon as possible. Debt, especially the high-interest types like credit card debts, can compromise your financial security. Instead of using your money to grow your net worth, you are forced to use it to pay off debt. You could have used your limited income to save for a financial goal or invest it to allow compound interest to make it grow.

So what can you do to get rid of your credit situation? Here are the 4 simple steps that you need to follow.

Make a list of all your credit card debts

Start by making a list of everything that you owe. Most Americans own more than one credit card account. List all that is under your name. Make sure you write the credit card details like the balance, interest rate, due date, etc. This will help you get a general overview of everything that you owe. It will also allow you to determine how much you need to pay back.

Look at your budget plan

Once you have listed all your credit card debts, you need to analyze your current financial situation. How much are you earning each month? And how much of that is being spent on your basic necessities and other monthly expenses? You want to update your budget plan so you can figure out the amount that you can allocate towards your debt payments. If you want to get out of debt within a year, you should pay the highest amount that you can afford. The more you can pay, the shorter the repayment period will be.

Choose a debt consolidation program

Once you have figured out how much you can afford to pay, it is time to determine the debt relief program that you will use. At this point, your best option to deal with your credit card debts is consolidation.

Choosing debt consolidation means you will have a simple repayment plan. Not only that, you can probably save on your debt payments – especially if you can negotiate a lower interest rate and have a shorter repayment period. As you pay the consolidated debt, you will also be strengthening your credit score.

The question is, what type of consolidation strategy will you choose? There are so many options to choose from. You have debt management, balance transfer, and debt consolidation loans. Make sure you to consider your financial situation before you make a choice. That way, you can smartly choose the right debt solution that you can stick to.

When you choose the right debt consolidation strategy to pay off your credit card debt, it should be easier to complete it. After all, it should be perfectly suited to your current financial situation. That means the payments should be affordable. Not only that, but it should also be aligned with any financial goals that you have. When you know the credit card debt consolidation will bring you one step closer to your goals, it will motivate you to do better.

Tips to pay off credit card debt fast

If you really want to pay off all your credit card debt fast, you need to follow a couple of tips to be successful. These can be applied regardless of the debt consolidation strategy that you choose to do.

Revise your budget plan

Start by revising your budget plan. If you landed in debt, there is a high chance that your budget plan was flawed, to begin with. It is probably time to check and make sure that it is updated. And while you are at it, you might as well create a bare basic budget plan. This will help you maximize your monthly payments. It gives you the chance to analyze your spending and see where you can save on. Anything that you stop spending on can be used to increase your debt payments.

Stop adding to your debt

The more that you add to your debts, the longer it will take for you to get out of debt. If you want to achieve debt freedom within a year, you have to stop adding to your credit card debt. Stick to using cash for now. If you cannot afford to pay for something in cash, do not buy it. Do not worry because this will only be temporary. After you have paid at least a significant portion of your debts, then you can think about using your credit cards once more. But when that time comes, you should have developed smart spending habits. This practice should help you be more cautious about spending your money.

Increase your monthly payments

Any chance that you get, you need to make an effort to increase your monthly debt payments. If you get a bonus, use it to pay more of your credit card debt. In case someone gives you money, use it to pay your debts. Go through your stuff and declutter your life. Anything that you do not need should be sold. The profits can go to your debt payments too. Every little effort will soon have a significant impact on your balance.

While you may have enjoyed the festivities because of the money that you borrowed, it will make you start the new year on a negative financial note. If you want to improve your life next year, you need to make sure that you have a swift solution for the debt that you used during the holidays.

One of the fastest ways to deal with your financial situation is consolidating credit card debt.

Benefits of consolidating credit card debt

You may be wondering, why do I need to consolidate my credit card debt right now? Can this be postponed and accomplished a few months later into the year?

Well, there is nobody stopping you from doing that. However, the earlier you start consolidating debts, the better it will be for your family. It does not matter what type of debt you have or how much you owe. It is always better for you to start working on it as early as possible. So if you can start consolidating credit card debt once the new year celebrations are over, that is one task that you can already cross off your list.

Here are some reasons that will help you appreciate credit card debt consolidation more.

Study and organize your debts

Isn’t it a good idea to start the year on the right foot? This is what debt consolidation can give you when you choose to use it immediately after the festivities are over. When consolidating credit card debt, you are can simplify your debt payments. It is a great opportunity for you to look at all your credit accounts so you can organize them all. Since you will be consolidating them, you do not have to worry about keeping track of the payments. You can focus on other things like making plans to improve your financial situation this year.

Get rid of the high-interest rate debt

Credit cards are notorious for their high-interest rates. This is one of the reasons why people prefer consolidating credit card debt. If you get a low-interest loan or a 0% balance transfer card, you can save a lot of money on your payments. You can use that money to finance some of the financial goals that you have for the rest of the year. That way, you can hit a lot of goals – be debt-free and wealthier too.

Lower the financial stress caused by any holiday debt

Finally, consolidating credit card debt can help lessen the financial stress that is usually caused by debt. According to reports, money is still the biggest reason why Americans feel stressed. It is not hard to believe that debt plays a huge role in all that. If you cannot pay off your debt, it will be very hard for you to increase your personal net worth. This is why it is a must for you to find a debt relief option that will help you manage your debts. The report reveals that it does not really matter what economic situation you are in. Your finances will always make you feel a bit of stress.

Options to consolidate credit card debt

Now that you know why consolidating credit card debt after the new year is a really good idea, let us look at two of your options. There are various ways to consolidate debt but if you want to lower the interest rate of your credit card, you need to focus on these two debt solutions.

Balance transfer

The first one is balance transfer. This involves a new credit card account that offers an introductory 0% interest rate. Usually, this lasts for a couple of months to more than a year. You want to get the one that has the longest introductory period. For a minimal fee (3% of the transferred amount), you can transfer all your credit card balances into this new credit card. This is a great way to deal with the high-interest rate because all your payments will go to the principal amount that you owe. To make this debt solution really beneficial, you need to aim to pay off your whole balance before the introductory period expires. At the very least, you have to pay a significant part of it. When the 0% interest expires, the card will have a very high interest rate.

Debt consolidation loan

Another option that will allow you to lower the interest rate is through a debt consolidation loan. Most loans have a lower rate compared to credit card debts. This is why you can really benefit if you use this in consolidating credit card debt. Of course, if you want to be smart when borrowing this loan, you need to ensure that you have a high credit score. Not only that, you need to borrow only what you need – nothing more, nothing less.

Consolidating credit card debt is a great way to get out of debt but you need to remember that the journey does not end here. You still have a long way to go when it comes to debt payments. Do not fall into a false sense of debt freedom.

If you are a new college graduate with an overwhelming amount of credit obligations, it may be time to take advantage of debt consolidation benefits. According to reports, 7 out of 10 graduates have significant loan amounts. The average student loan is currently at $37,172 – usually distributed across different credit accounts. To make things worse, that is not only debt that these graduates have. You can bet that a lot of them have credit card debts too.

As a newly graduate, you should be feeling happy about your academic accomplishment. However, that is shaded by the feeling of anxiety for the debts you have to pay. Now that you are no longer in school and about to start a job, you are now fully responsible for your debt payments. Whether you are ready or not will not matter. It will not stop the bills from coming in.

This is the reason why you need to seriously consider getting a debt relief program that will help make your monthly payments easier. One of the options that you have is debt consolidation.

Three debt consolidation benefits for college graduates

There are a number of debt consolidation benefits you can expect as a new graduate. Here are three advantages when you decide to use this debt solution to manage your credit obligations.

You manage your student loans better

Since this is the major debt that new college graduates owe, it is important to prioritize how you will pay this off first. Your student loans allowed you to pay your way through college. Most of the time, your student loans are distributed between different accounts – usually based on when the funds are released. Not only that, there is a different set of rules when you have federal and private student loans. It can be very hard to stay on top of all these and the varying repayment terms. If you miss one payment, it can cost you money that should have been used to make your financial position secure.

To avoid exhausting yourself trying to keep up with all the payments, you should take advantage of the most important among debt consolidation benefits. It can simplify all your debt payments by combining them under one credit account. Federal and private student loans have their own repayment plans that will allow you to consolidate your debts. Get to know your options so you can start consolidating all your debts. This will make it easier to manage your monthly payments. And if your timing is right, you might be able to get a lower interest as you consolidate your debts.

When you combine the number of student loans that you owe with high-interest credit card debts, it can be really overwhelming. Fortunately, consolidating your debts will make things easier. You have the option to consolidate these two types of debt – but it is not really advisable. First of all, federal student loan consolidation will probably not accept your credit card debts. And if you consolidate through a private loan, you might end up with a higher interest rate.

Your option is to consolidate your credit cards separately. You can choose to do it through a loan or a balance transfer card. Both of these will help improve the high-interest rate of your current debts. With a lower interest rate, a bigger part of your funds will go to the principal debt – helping you get ahead on your credit card payments.

You improve your credit score

The last of the debt consolidation benefits is giving you the chance to improve your credit score. Most of the time, college graduates have a really thin credit history. At this point, the only credit that you have used is probably just your credit card. That would give you a really low credit score. If you did not pay your credit card balance well, you will end up with disaster for a credit report.

Fortunately, debt consolidation can help you improve your credit score. One of the biggest factors affecting your credit score is your ability to pay off your debts. If you miss out on payments, that can bring your score down. By consolidating your debts, you can simplify your payments. Since you only have one payment to worry about, it is not likely that you will miss out on a payment. As you continue to pay off your debts on time, it will steadily increase your credit score.

Use debt consolidation to secure your financial future

As a new college graduate, you have a lot of work to do before you. It is important for you to identify the tools that you need to secure your financial future. You still have a long road ahead of you when it comes to being financially secure. While your focus right now may be on getting a job, that is not all that you need to do.

Among the things that you need to work on includes the following.

Setting up a budget. Think about the lifestyle that you want to lead and make sure it is aligned with your budget. Consider the amount that you need based on the lifestyle that you want to live. If your chosen career path can afford it, then you are set. But if not, you have to make sure your budget plan is adjusted accordingly.

Manage your debts. Since you got out of college with a couple of debts, you need to make sure you have full control over it. You do not want it to ruin your financial position while you are still trying to make it stronger and more secure.

Try to be a smarter spender. Ultimately, your financial success does not lie in how much you earn. It is how you use your resources. If you can be smart with your spending, you can use your income properly and efficiently to grow your personal net worth.